According to a Fidelity securities filing dated December 30, 2023, Elon Musk's social media platform, X (formerly known as Twitter), has experienced a staggering 71.5% decrease in value since his takeover in October 2022. This dramatic decline has left the platform now valued at only a fraction of its initial $44 billion acquisition price. The contributing factors to this downfall include a drop in users, advertising challenges, and concerns surrounding content moderation.
The Guardian reports that Elon Musk rebranded Twitter as X in July 2023, and according to Fidelity's assessment, the current estimated value of X is approximately $12.5 billion. In the first year under Musk's ownership, X saw a 15% decrease in monthly users.
Since the takeover, X has implemented significant staff reductions, cutting at least 50% of its workforce, and has scaled back content moderation. In September, the European Union issued a warning to Musk, citing X as having the highest ratio of disinformation posts among all major social media platforms.
Fidelity's assessment, published by Axios and covering until November 2023, reflects the repercussions of losses on X (formerly Twitter). The evaluation underscores the impact of an advertiser exodus that commenced in mid-November, with 10.7% of the losses occurring exclusively in that month.
Notably, major advertisers, including Disney, Apple, and Coca-Cola, withdrew paid advertising from the platform in November, distancing themselves from Musk due to his endorsement of an antisemitic post.
Despite X's struggles, Elon Musk, ranked as the world's wealthiest man by Forbes with a net worth of $251 billion, has emphasized his acquisition of Twitter as an altruistic effort aimed at benefiting humanity, stressing a broader purpose beyond financial considerations.
